Midwestern Governors Cooperate to Promote Electric
Transmission Investment
July 16, 2005 PRNewswire
DES MOINES, Iowa -- Midwestern governors have agreed
they will work together to support additional investment
in a reliable electric transmission grid. Further,
they have committed to regional cooperation in permitting
and locating interstate and international electric
transmission lines. Standing before a banner reading
"Building the Energy Highway," the participating state
governors announced the regional electric transmission
protocol during the Midwestern Governors Association
(MGA) meeting in Des Moines on July 16. The premier
of the Canadian province of Manitoba was also on hand
pledging support.
"Today, we have pledged to work cooperatively to
expand economic opportunity throughout the Midwest,"
said Iowa Governor Tom Vilsack. "Each signatory to
this protocol recognizes the value of a robust, reliable
electric transmission system to our states' economies.
We support additional investment in research, development,
and implementation of the electric transmission grid
when it is needed and in the public's interest. We
agree to support efforts to improve coordination and
cooperation when evaluating and processing applications
for future projects that cross state and national
boundaries."
Vilsack and Ohio Governor Bob Taft pushed for the
regional electric transmission agreement. They approached
the other governors and Manitoba's premier about the
reliability and economic development benefits of additional
investment in electric transmission. Construction
of new electric transmission facilities has not kept
pace with increases in electric generating capacity.
"This is clearly a watershed development to have
so many Midwestern governors and Manitoba's premier
agree to collectively plan for transmission grid expansion
and improvement," said Federal Energy Regulatory Commissioner
Nora Mead Brownell. "I commend them for exercising
far-sighted leadership that will support and enhance
economic development in North America's heartland.
I'm very excited and FERC will do everything it can
to support this effort."
Nationwide, annual transmission investment fell from
more than $5 billion during the mid 1970s to less
than $1 billion in 2002. Generation capacity has grown
significantly both nationally and in the Midwest,
particularly since 2000, but transmission investment
has failed to keep pace. The result has been a more
congested Midwest transmission grid as curtailment
of scheduled transmission transactions more than tripled
from 2000 to 2004.
The Midwestern United States and Manitoba, Canada,
currently generate more than 200,000 megawatts of
low-cost electricity and the potential for environmentally
friendly wind power generation in the Upper Midwest
is enormous. A robust electric transmission grid is
essential to deliver low-cost and renewable power
to customers.
Signed on to the Midwest electric transmission protocol
at the time of the announcement are the Governors
of Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota,
Missouri, Nebraska, North Dakota, Ohio, South Dakota,
and Wisconsin, and the Premier of Manitoba, Canada.
Those supporting the protocol recognized the need
for a reliable and efficient electric transmission
system, additional investment in the transmission
grid when it is warranted, and improved coordination
and cooperation in the planning and processing of
applications for electric transmission projects that
cross state and national boundaries.
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